The Cryptocurrency Revolution Backed by Trump: How Stablecoin Audits and New Applications Are Reshaping the Financial Landscape

In 2025, the Trump administration’s support for the cryptocurrency industry has entered "fast-track mode." World Liberty Financial (WLF), a crypto firm publicly endorsed by Trump, announced the launch of a stablecoin audit initiative and plans to introduce new applications in cross-border payments and decentralized finance (DeFi) lending, triggering shockwaves across global financial markets. This series of moves not only marks cryptocurrency’s transition from a "fringe asset" to a "mainstream financial tool" but also reflects the U.S.’s ambition to dominate rule-setting in the digital currency arena. In this high-stakes game of technology, capital, and power, stablecoin audits and new application development have emerged as pivotal pieces.

Stablecoin Audits: From "Trust Crisis" to "Compliance Revolution"
Stablecoins, serving as a bridge between cryptocurrencies and the real economy, have long faced issues of security and transparency. The 2022 collapse of TerraUSD (UST) wiped out $600 billion from the global crypto market, exposing the fatal flaws of algorithmic stablecoins. In 2024, a U.S. Department of Justice investigation revealed that some stablecoin issuers had opaque asset reserves and misappropriated user funds. Against this backdrop, WLF announced a partnership with the Big Four accounting firms—PwC, KPMG, and others—to establish a "real-time audit + on-chain transparency" regulatory framework for stablecoins.

The core of this plan lies in leveraging blockchain technology to create "immutable records" of asset reserves, with third-party institutions conducting daily checks on the matching of collateral to circulating supply. For example, WLF’s planned "Liberty Dollar" stablecoin will be pegged to the U.S. dollar, gold, and short-term Treasury bonds, with 100% of its reserves publicly disclosed on public blockchains like Ethereum, allowing users to track fund flows at any time. This "on-chain + off-chain" dual-audit model addresses trust issues in traditional finance while mitigating the speculative risks of algorithmic stablecoins. If successful, this model could usher in a "Compliance 2.0 Era" for the global stablecoin industry.

New Applications: From "Speculative Tools" to "Financial Infrastructure"
WLF’s new application strategy targets the pain points of traditional finance. Its cross-border payment system aims to achieve "instant settlements" using stablecoins, with transaction fees as low as one-tenth of those of the traditional SWIFT system. For instance, when a U.S. company pays a supplier in Southeast Asia, it can complete the transaction directly via "Liberty Dollar" without relying on the dollar clearing system, significantly reducing currency exchange risks and time costs. If widely adopted, this model could disrupt the market share of payment giants like Visa and Mastercard and reshape global currency circulation.

In the DeFi space, WLF plans to launch "on-chain banking" services, allowing users to conduct mortgage lending, liquidity mining, and other operations using stablecoins. For example, small and medium-sized enterprises (SMEs) can use crypto assets as collateral to secure loans quickly, while individual users can earn annualized returns of 5%-8% by participating in DeFi protocols. This "disintermediated" financial model, though facing regulatory risks, has already attracted traditional financial institutions like Goldman Sachs and Morgan Stanley to enter the field. Data shows that the total value locked (TVL) in global DeFi surpassed $1.2 trillion in 2025, a 300% increase from 2024, underscoring robust market demand for innovative financial services.

Regulatory Tug-of-War: From "Wild West" to "Rule-Setting Dominance"
The Trump administration’s support for cryptocurrencies is not unconditional. In March 2025, the U.S. Securities and Exchange Commission (SEC) granted WLF status as a "special-purpose broker-dealer" but required its stablecoin issuance to comply with anti-money laundering (AML) provisions under the Bank Secrecy Act. The Treasury Department mandated that stablecoin issuers must hold national banking licenses and be subject to Federal Reserve oversight. This "carrot-and-stick" approach balances innovation with regulatory control, ensuring the U.S. maintains dominance in digital currency rule-setting.

A deeper implication is the U.S.’s strategy to consolidate dollar hegemony through cryptocurrencies. WLF plans to peg the "Liberty Dollar" to the U.S. dollar and promote its use as a settlement currency for international oil and commodity trading. If achieved, this would reduce the dollar’s reliance on traditional banking systems and further cement its status as the global reserve currency. However, this strategy faces challenges: the EU has launched a digital euro initiative, and China’s digital yuan cross-border payment system (CIPS) now covers 130 countries, intensifying global competition in digital currencies.

Balancing Technological Innovation and Risks
The push for stablecoin audits and new applications by Trump-backed crypto firms is both a product of technological innovation and a manifestation of great-power rivalry. Stablecoin compliance will reduce industry risks and drive cryptocurrency’s transition from a "speculative asset" to a "practical tool." The expansion of new applications could reshape the global financial landscape and challenge the monopolies of traditional financial institutions. However, amid this technological surge, risks such as regulatory loopholes, market manipulation, and privacy breaches remain critical concerns.

In the future, competition in the cryptocurrency industry will hinge not just on technology but also on rule-setting power, ecosystem-building capabilities, and global influence. Whether the U.S. can achieve "risk-controlled prosperity" through "regulatory sandboxes" and technological innovation will determine its leadership in the digital currency era. For other nations, finding the right balance between embracing innovation and mitigating risks is an urgent challenge.